The IS curve represents Goods and services market ; while the LM curve represent the Money market
The IS curve represents the _, while the LM curve represents the O foreign exchange market;...
which curve is affected if foreign countries buy more Canadian goods? ( using IS-LM-FE curve ) a. What happens to IS, LM , FE curve ? if any of these curve shifts, what makes them move ? provide detailed reason in word ( graph would help a lot ) but ,not in handwriting, I may not recognize your handwriting.
Consider an economy with the given equations. • Y=C+I+G • C = 88 +0.6(Y-T) • I = 110 - 10r •(M/P)d = Y - 15r • G=560 • T = $30 • M = $1200 • P = 3.0 Use the relevant set of equations to derive the LM curve. Move points A and B to graph the LM curve.Which equation represents the LM curve?
Use an open market IS-LM diagram to explain the result of fiscal expansion under fixed exchange rate system. What will happen to the IS and LM functions, equilibrium output, domestic interest rate, exchange rate level, capital flow, foreign exchange reserve and net exports? Explain your answer.
In an IS-LM model, any point that is to the left and below the IS-curve indicates a situation where A. there is excess demand for goods and services in the expenditure sector B. there is excess supply of goods and services in the expenditure sector C. there is excess demand for money in the money sector D. there is excess supply of money in the money sector E. the expenditure sector is in equilibrium but the money sector is not
me foreign exchange market is the market in which one currency is exchanged for another, Which of the following is true if the dollar becomes weaker on the foreign exchange market—that is, the value of the dollar falls relative to the value of foreign currency? OA. U.S. citizens will import more goods and services from abroad OB. A BMW automobile produced in Germany will cost less to import into the United States, OC. A trip to Europe will be less...
Write about the Foreign Exchange Market. Describe the functions of the foreign exchange market
8. Balance of payments and the foreign exchange market The following graph shows the market for euros, which is initialy in equilibrium. Suppose an economic expansion in the United States leads to an increase in the incomes of American households, causing imports from Europe to rise On the graph, illustrate the effect of an economic expansion on the market for euros by shifting the appropriate curve or curves. On the graph, illustrate the effect of an economic expansion on the...
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a. shifts the demand curve for yen leftward, which causes the yen to appreciate. b. shifts the demand curve for yen rightward, which causes the yen to appreciate. c. shifts the demand curve for yen rightward, which causes the yen to depreciate. d. shifts the demand curve for yen leftward, which causes the yen to depreciate. 1b. A relatively high rate of inflation in the...
Why are financial markets (the bond market, the stock market, and the foreign exchange market) important to the economy?
Assuming Call option in the foreign exchange market (using the dollar-peso exchange rate), explain briefly the following market scenarios: a) in the money; b) at the money; and c) out of the money.